Tuesday, 02 January 2024 12:17 GMT

Market comments on behalf of Van Ha Trinh, Financial Markets Strategist at Exness


(MENAFN- Your Mind Media ) Silver prices rebounded as dip-buyers stepped in on Tuesday, snapping a plunge of over 30%. The market recovered after the nomination of Kevin Warsh as Federal Reserve Chair sparked a sell-off. The nomination fueled doubts about the direction of monetary policy, weighing on non-yielding assets like silver.

While the short-term macro picture was less supportive amid some hawkish Fed commentary, higher margin requirements from the CME, and a de-escalation in US-India trade frictions, the medium-term outlook remains constructive. Safe-haven demand remains strong amid geopolitical uncertainty, while the ’arket’s deficit could sustain prices.

Looking ahead, investors will focus on upcoming US economic data, which may prove pivotal in shaping expectations for monetary policy outlook and guiding silver’s next move. Meanwhile, geopolitical developments remain a key wildcard, with particular attention on the US-Iran talks. Any setback or escalation could undermine risk sentiment and further support demand for precious metals.

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